SUMMARY PROCEEDINGS 1966 ©International Monetary Fund. Not for Redistribution This page intentionally left blank ©International Monetary Fund. Not for Redistribution INTERNATIONAL MONETARY FUND SUMMARY PROCEEDINGS OF THE TWENTY-FIRST ANNUAL MEETING OF THE BOARD OF GOVERNORS SEPTEMBER 1966 WASHINGTON, D. C. ©International Monetary Fund. Not for Redistribution This page intentionally left blank ©International Monetary Fund. Not for Redistribution CONTENTS PAGE Introductory Note ix Message from the President of the United States of America, Lyndon B. Johnson 1 Opening Address by the Chairman of the Boards of Governors, the Governor for Iran, Jamshid Amouzegar 2 Presentation of the Twenty-First Annual Report by the Chairman of the Executive Board and Managing Direc- tor of the International Monetary Fund, Pierre-Paul Schweitzer 10 Discussion of Fund Policy at Second Joint Session Statements by the Governors for Jamaica—D. B. Sangster 22 Malaysia—Tan Siew Sin 25 Ghana—A. A. Afrifa 29 Canada—Mitchell Sharp 33 Yugoslavia—Kiro Gligorov 34 France—Michel Debre 37 Japan—Takeo Fukuda 49 Jordan—Hatim S. Zu'bi 53 Germany—Karl Blessing 53 United Kingdom—James Callaghan 57 Afghanistan—Abdullah Yaftaly 64 India—Sachindra Chaudhuri 67 Australia—William McMahon 70 Korea—Se Ryun Kim 75 Singapore—Lim Kim San 77 Somalia—Ali Omar Scego 79 v ©International Monetary Fund. Not for Redistribution VI CONTENTS PAGE Discussion of Fund Policy by Governors at Fund Session Statements by the Governors for South Africa—G. W. G. Browne 82 Israel—Pinhas Sapir 85 Finland—Klaus Waris 89 Italy—Emilio Colombo 90 Netherlands—M. W. Holtrop 95 Philippines—Andres V. Castillo 99 United States—Henry H. Fowler 102 Syrian Arab Republic—Ahmad Mourad 115 Belgium—Hubert Ansiaux 118 Austria—Ludwig Seiberl 121 Mexico—Antonio Ortiz Mena 124 Greece—Xenophon Zolotas 128 Ireland—John Lynch 132 New Zealand—H. R. Lake 134 Nepal—Bhekh Bahadur Thapa 136 Congo, Democratic Republic of—Albert Ndele 139 Kenya—J. S. Gichuru 142 Trinidad and Tobago—A. N. R. Robinson 146 Chad—Abakar Sanga Traore 148 Tanzania—A. H. Jamal 151 Paraguay—Cesar Barrientos 155 Discussion of Fund Policy by Governors at Bank, IFC, and IDA Session Statements by the Governors for Pakistan—N. M. Uquaili 162 United States—George W. Ball 163 Mauritania—Mohamed Salem Ould M'Khaitirat .... 163 Paraguay—Cesar Romeo Acosta 165 Guyana—P. S. d'Aguiar 166 Sweden—Krister Wickman 168 Ethiopia—Yilma Deressa 169 Uganda—L. Kalule-Settala 170 Laos—Sisouk Na Champassak 172 ©International Monetary Fund. Not for Redistribution CONTENTS Vii PAGE Discussion of Fund Policy at Closing Joint Session Statements by the Governors for China—Ching-Yu Chen 175 Zambia—A. N. L. Wina 176 Sierra Leone—R. G. O. King 181 Algeria—Ahmed Kai'd 182 Nigeria—A. A. Atta 188 Ceylon—U. B. Wanninayake 189 Central African Republic—Alexandre Banza 191 Libya—Khalil Bennani 193 Burundi—Eric Manirakiza 195 United Arab Republic—Nazih Ahmed Deif . 196 Upper Volta—Tiemoko Marc Garango .:....., , . 203 Concluding Remarks Statements by The Chairman of the Executive Board and Managing Director of the International Monetary Fund, Pierre-Paul Schweitzer 208 The Governor of the Fund for Greece, Xenophon Zolotas, on the Forthcoming Retirement of the Secre- tary of the Fund 209 The Chairman of the Boards of Governors, the Gov- ernor for Iran, Jamshid Amouzegar 211 Schedule of Meetings 215 Provisions Relating to the Conduct of the Meetings 216 Reports of the Joint Procedures Committee Report I 217 Annex I Agenda 219 Annex II General Reserve 220 Annex III Rules and Regulations 221 ©International Monetary Fund. Not for Redistribution Viii CONTENTS PAGE Annex IV Membership for Indonesia 223 Annex V 1966 Regular Election of Executive Di- rectors 223 Statement of Results of Elections, September 28, 1966. 230 Report III 234 Resolutions 21-1 Increase in the Quota of Nicaragua 236 21-2 Increase in the Quota of Tunisia 237 21-3 Membership for Singapore 238 21-4 Revocation of the Quota Increase for Laos . 241 21-5 Amendment of Section 14(a) of the By-Laws 242 21-6 Amendment of Section 14(e) of the By-Laws . 243 21-7 1966 Regular Election of Executive Directors . 243 21-8 Membership for Guyana 244 21-9 Financial Statements, Report on Audit, and Ad- ministrative Budget 247 21-10 General Reserve 247 21-11 Amendments of the Rules and Regulations 248 21-12 Membership for Indonesia 248 Attendance Members of Fund Delegations 254 Observers 269 Executive Directors and Alternates 271 Guide to Statements by Governors Alphabetical List, by Country, of Governors' Statements. 275 List of Principal Topics Discussed 277 ©International Monetary Fund. Not for Redistribution INTRODUCTORY NOTE The Twenty-First Annual Meeting of the Board of Governors of the International Monetary Fund was held in Washington, D. C., from September 26 through 30, 1966, under the Chairmanship of the Honorable Jamshid Amouzegar, Governor for Iran. The Meeting was held in conjunction with the Annual Meetings of the Boards of Governors of the International Bank for Reconstruction and Development and its affiliates. These Summary Proceedings include statements, or portions of statements, relating to the work of the Fund which were made by the Governors during the Meetings; omitted passages are indicated by dots(. .). The statements are presented in chronological order. Resolutions adopted by the Board of Governors of the Fund, reports and recommendations of the Joint Procedures Com- mittee, and other documents relating to the conduct of the Meetings and the election of Executive Directors are also included. A list of statements arranged alphabetically by country and a list of the principal topics discussed will be found on pages 275-78. Statements relating to the work of the Bank are reproduced in the Summary Proceedings of the Annual Meetings of the Bank and its affiliates, issued by the Bank. W. LAWRENCE HEBBARD Acting Secretary International Monetary Fund Washington, D.C. November 9,1966 ix ©International Monetary Fund. Not for Redistribution This page intentionally left blank ©International Monetary Fund. Not for Redistribution MESSAGE FROM THE PRESIDENT OF THE UNITED STATES OF AMERICA1 Lyndon B. Johnson On behalf of the Government and the people of the United States I send a warm welcome to the Governors, Delegations, and the distinguished guests of the International Monetary Fund and the World Bank. You meet once again in the noble cause of international cooperation. The world, remembering your main past accomplishments, looks to you for continued leadership, strengthening the financial arrangements so vital to the common prosperity. The agenda for this meeting and for the coming year is of unusual importance. Your wisdom and imagination can benefit countless millions whose welfare is at stake. Your work, the works of peace embody the hopes and dreams of all men. I wish you every success. 1 Delivered by the Governor of the Fund and Bank for the United States at the Opening Joint Session, September 26, 1966. 1 ©International Monetary Fund. Not for Redistribution OPENING ADDRESS BY THE CHAIRMAN OF THE BOARDS OF GOVERNORS, THE GOVERNOR FOR IRAN1 Jamshid Amouzegar It is indeed a great privilege and a distinct honor for me to welcome you all to our twenty-first Annual Meetings, and to make a few introductory remarks about our organizations' past accom- plishments and their tasks ahead. First, however, I wish to thank the Government and people of the United States for their gracious hospitality and to extend a most cordial welcome to our guests. I extend a special welcome to the Governor for Singapore, which became the one hundred and fourth member of the Fund and Bank on August 3, and to the Governor for Guyana, who has today completed the steps making his country the one hundred and fifth member of the two organiza- tions. We should take special note, also, of the presence here of Delegations from the Gambia and from Indonesia, which have both applied for membership in these organizations. Twenty years ago tomorrow in this very same place, the Gover- nors of the Fund and the Bank gathered together for their first Annual Meetings. The twenty years in retrospect present vivid evidence of the vitality of a group of institutions, constantly looking forward, continually reappraising their mission while holding out stability to a gyrating world. In reflecting upon the past, I am torn between two sentiments: pride in our institutions and their achieve- ments, and disappointment that the world has not yet fully met the challenge of the fundamental issues of development. As for the accomplishments, the World Bank Group has so far provided more than $11 billion for development projects in 89 1 Delivered at the Opening Joint Session, September 26, 1966. 2 ©International Monetary Fund. Not for Redistribution ADDRESS BY CHAIRMAN OF BOARDS OF GOVERNORS 3 countries. In recent years they have taken an increasingly active role in agriculture and educational development while pursuing their paramount interest in the financing of infrastructure. They have given large-scale assistance for the growth of industry, and this activity will be broadened and accelerated as the momentum of IFC's operation continues and the Corporation exercises its new authority to borrow from the Bank. On more than one occasion, the Bank's objective intervention has deflected international discord and helped to channel energies into productive achievement. Increasingly, it has applied its experi- ence and professional competence to the search for solutions to some of the more intractable problems of development. The Con- vention on Settlement of Investment Disputes is one such result. The Bank's Executive Directors who proposed that Convention are now considering another to facilitate the flow of private funds by establishing a system for the international insurance of invest- ments. In addition, a study conducted by the Bank's staff has resulted in the outline of a Scheme for Supplementary Financial Measures, now under consideration by the United Nations Con- ference on Trade and Development.